• Toyota offers diverse preferences with flawless

quality at affordable price and at perfect timing.
• Toyota has always striven for better cars for more
• After the world war II most people couldn’t afford a
car even at cost.
• The Toyota Production System (TPS) aims at
elimination of waste, which snowballed
• JIT and Jikoda helped in reducing the inventory.
• The five why’s

The 5 whys
This exercise consists of asking a chain of “why” questions until the root cause
is identified and countermeasures are determined.

• They had increasing
• Toyota was exporting its
products earlier which
was not a viable option
• The yen was becoming
stronger so investment
in foreign market would
fetch more return.

• They had to train people
with regard to the TPS
that they followed.
• Also they released a new
version of Camry which
had increased variation
in seats.
• But there was an
engineering flaw in the
Why a new plant in US Problems they faced
Georgetown Ramp Up
• Replication of Tsutsumi plant, maintaining
high quality, low cost.
• Selection and training programs reinforcing
TPS basics.
• Month long trip, Intense personal training,
one to one approach.
• TPS isolates problem from people thereby
enabling them to focus on solving the

• Production
– Mission
– Planning process, example
– 2 major principles used
• Heijunka- evening out
• advantages: supplier surge, bottleneck elimination
Kanban cards- JIT principle, connects supplier and
workstation, part code number, batch size, delivery address.
• Assembly
– Work charts (cycle time, sequence of task, timing).
– Red , green ,yellow lines and andon cord.


Quality Control
1. Setting tough standards and checking every vehicle against
2. Following through with customer’s experiences with shipped
3. Inspecting problematic items amongst other items at the
receiving dock.
4. Providing instant feedback to direct operations including
final assembly by rigorous inspection.
5. Prevention of problems happening in the first place by
working closely with the design team and suppliers.

1. Policy of engaging low cost suppliers over low price
suppliers always.
2. Practice of Cost Estimation by encouraging suppliers to
share their cost data with them.
3. Helping them improve their manufacturing processes with
inputs from Toyota Kaizen experts.
4. Subsequently resulting in reduction in procurement prices.


Camry seats consisted of front left and right assemblies, the
rear seat benches and backrests and the bolsters.
• For the Assembly, it was a soft part prone to damage as
well as the bulkiest.
• For the QC, it was an item of safety.
• For the Purchasing, it was the most expensive of the
purchased parts.
• The seat was a sensory item for customer satisfaction
without any precise industry standards.

• TMM’s used Sequential Pull to get the delivery of seat sets.
• Supplier – Kentucky Framed Seat (KFS).
• Just in time inventory delivered according to make and model
1. Transmitter attached to car body sent real-time manifest
information to printers at KFS and TMM .
2. The car body and the seat sets simultaneously travelled down the
assembly line in the respective factories.
3. The seat sets are then strapped according to the order.
4. Delivered batches of 58 seats to TMM within 30 minutes
5. Sets waited in TMM’s receiving dock and hoisted to the overhead
conveyor according to the manifest prints.

THE SEAT-Assembly

• Exception to Multivendor policy and in house
assembly of seats.
• Locational closeness helped Sequential Pull.
• Kaizen tips to KFS.
• Initial Start up was difficult.
• Model Change- Sequential pull till last day of
production- 10 days to change over its
process- 10 weeks to build-up capacity.
Kentucky Framed Seats
• 3 styles 4 Colors were changed to 5 styles 3
• Camry Wagon +8 North America +10 Europe
+18 Japan and Middle East
• Inventory build up – Delivery deadlines
• Without affecting line solution

Seat Installation & The Hook
• A type of visual control
• Displays the current
state of work
• It is one of the main
tools of Jidoka.
• Allow speedy
corrective action to be
taken by supervisors
when a problem arises
The Andon board

• Key control tool for Just-in-Time production.
• Instruction for production and conveyance to check against
over production and to detect irregular processing speeds

The functional categories of Kanban are:
• 1-card kanban (referred to as Production Kanban)
• 2-card kanban (referred to as Withdrawal Kanban)
• Part Specific kanban (used for single part family or grouping)
• Route Specific kanban (used for mix production)
• CONWIP (CONstant Work In Progress)

Kanban card
• Kaizen refers to the series
of activities or practices
that focus upon continuous
improvement of processes.
• Kaizen activities typically
emphasize manual work
operations rather than
• Not an activity to be
performed by a specialist,
but can be – in fact should
be – performed by all
employees at each job site.
• Manufacturing and conveyance of only what is needed, in the amount

• Enhances efficiency and enables quick responses to change.
Four Ss
• Sifting (Seiri): Go through everything in the
work area, separating and eliminating what
isn’t needed.
• Sorting (Seiton): Arrange items that are
needed in a neat and easy-to-use manner.
• Sweeping Clean (Seiso): Clean up the work
area, equipment, and tools.
• Spic and Span (Seiketsu): The overall
cleanliness and order that result from
disciplined practice of the first three Ss.
• Stop production lines in the event of problems.
• This prevents passing on defects.
• Build in quality at the production process.
• At the same time, since defects are prevented automatically,
inspectors become unnecessary, which in turn results in significant
labor savings.
Heijunka / Leveled Production
• Overall levelling in the production schedule with respect to
variety and volume of items produced in given time periods.
• This is a prerequisite for Just-in-Time production.

Unintended Acceleration:
Toyota's Recall Crisis
• 3.8 million cars recalled
• Due to floor mats that could jam the accelerator pedal.
• There appear to be two root causes for Toyota’s quality problems.
1. Outgrowth of management’s ambitions for rapid growth :-
• Vision for rapidly increasing global market share
• Sales grew faster than the company could manage
• Priority over the company’s traditional focus on quality
• Expansion gave management little opportunity for adjusting
its systems and practices to accommodate such strong
growth personnel were stretched increasingly thin
• New contract engineers to boost engineering capacity as
much 30% of its development work

2. Increasing complexity of the company’s products
• Typical auto sold in the United States or Europe has more than 60
electronic control units and more than 10 million lines of
computer code — a fourfold increase over what was common a
decade ago
• Lead time between exterior design approval and start of sales
was compressed to less than 20 months.
• Accelerated design cycles strained the company’s development
and production systems and pushed human resources to the
limit, creating the conditions for quality failures.
• 70% of the value added in Toyota’s vehicles comes from parts and
subassemblies produced by its suppliers

• On the other hand, quality experts say Toyota proved itself inept at
crisis management and marketing.
• Toyota representatives reacted to the complaints in ways that
confounded marketing and crisis management experts.
• http://www.kellogg.northwestern.edu/kellogg-case-publishing/case-search/case-

• http://www.toyota-

• http://www.businessinsider.com/toyota-paying-billions-because-of-marketing-

• http://www.lean.uky.edu/reference/terminology/

• http://sloanreview.mit.edu/article/what-really-happened-to-toyota/